The Bureau of Internal Revenue (BIR) aims to collect a record-high P3.23 trillion in tax revenues this year, fueled by stricter tax compliance enforcement, online seller inclusion in the withholding tax system, and the passage of key tax measures.
The Bureau of Internal Revenue ( BIR ) is aiming to collect a record-high P3.23 trillion in tax revenues this year, building upon the success of exceeding its collection target for the first time in 20 years in 2024. The agency is confident in achieving this ambitious goal through stricter tax compliance enforcement, integrating online sellers into the withholding tax system, and the successful passage of key tax measures set to contribute to the government's revenue target for 2025.
\BIR Commissioner Romeo Lumagui Jr. highlighted the importance of taxpayer compliance and education, stating, 'We see that when taxpayers are compliant and well-informed, reaching our target becomes easier.' To promote voluntary tax compliance, the BIR launched its 'Friendly Tax Compliance Verification Drive' (TCVD) from February 10 to 14, 2025. This nationwide initiative aims to educate businesses about their tax obligations, identify common compliance issues, and guide them in making necessary corrections. Lumagui emphasized that the TCVD is purely educational and 'no penalties will be imposed.' \Another key focus for the BIR is online sellers. Compliance with Revenue Regulation No. 16-2023 has been largely positive so far. The regulation, effective July 15, 2024, requires e-marketplace operators and digital financial service providers to withhold 1% of half the gross remittances made to sellers using their platforms. However, this tax will not be applied if the seller's annual total gross remittances in the previous year did not exceed P500,000, or the seller's cumulative gross remittances for the current year have not yet reached P500,000. The BIR will assess total collections from online sellers after the April 15 income tax filing deadline. Commissioner Lumagui stated, 'Diyan natin makikita kung ano ang magiging ultimate compliance ng mga online sellers,' (That’s when we’ll see the full extent of online sellers’ compliance.) The BIR is also relying on the passage of proposed tax laws, particularly those imposing levies on single-use plastics and reforming the fiscal regime for the mining industry. Commissioner Lumagui noted, 'Kasi nung sinet ‘yung P3.23 trillion na ‘yan, in-assume din na mapapasa itong mga batas na ito,' (When the P3.23 trillion target was set, it assumed these laws would be passed.
BIR Tax Collection Revenue Target Online Sellers Tax Compliance Withholding Tax
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